(Hong Kong, October 16, 2006) -- Leading Hong Kong plastic resins and specialty colourants supplier Ngai Hing Hong Company Limited (the ¡§Company¡¨) and its subsidiaries (the ¡§Group¡¨) (Stock code: 1047) today announced its annual results for the year ended June 30, 2006.
For the year under review, the Group recorded a turnover of HK$1,332,120,000. Profit attributable to shareholders amounted to HK$7,082,000. Earnings per share for the period were HK1.97 cents. The Board has recommended payment of a final dividend of HK1.0 cent per share. Including the interim dividend of HK1.0 cent per share, the total dividend payment for the year under review will amount to HK2.0 cents per share.
Mr. Hui Sai Chung, Chairman of Ngai Hing Hong, said, ¡§In the past year, plastics related industries had to face a very testing business environment with crude oil and raw material prices climbing persistently and keen market competition. This posed challenges to the Group. Nevertheless, guided by clear and focused business strategies, the Group still achieved growth in turnover.¡¨
During the year under review, surge in raw material prices pushed up the Group¡¦s production costs and also dampened purchasing sentiment of customers. Accordingly, the Group¡¦s business growth was affected. The Group adopted various concrete measures, including taking orders with lower risks, shortening account receivables recovery period and adjusting customer portfolio.
Going forward, the Group will seek to broaden its income sources and at the same time reduce expenditure. On the one hand, it will expand its customer base targeting especially large enterprises by implementing aggressive sales and marketing activities. On the other hand, it will continue to apply cost control measures to heighten cost effectiveness of production and enhance overall operational efficiency. In addition, the Group will seek to effectively increase cash flows and reduce gearing through lowering inventory levels and shortening recovery of account receivables. Such moves will help to ensure the Group¡¦s financial stability and flexibility.
The Group will continue to work with customers¡¦ R&D teams to jointly develop new products. It will strive to develop more new products and applications of products in various industries, such as the packaging industry, so as to expand its income sources and fully realize production efficiency and its economies of scale advantages while satisfying different customer demands.
Mr. Hui concluded, ¡§With prudence and enthusiasm, Ngai Hing Hong will continue to strive for long-term development and optimum shareholders¡¦ values, and work towards better results in the coming year so as to bring rewarding returns to our shareholders.¡¨
About Ngai Hing Hong Company Limited
Ngai Hing Hong provides a total solution to plastic products manufacturers with services and products ranging from plastic resins (including polymers and engineering plastics) selection, complementary computerised colour matching services, on the spot technical advice, to the supply of custom-made plastic colourants, engineering plastics and PVC compounds for the plastics industry.